Liquidity on the Horizon? ARCT V Releases Supplemental Info

In late June, American Realty Capital Trust V (ARCT V) signaled a liquidity event may be on the horizon by announcing the engagement of JP Morgan Securities, LLC and RCS Capital to evaluate strategic alternatives. 

This morning, the trust released unaudited supplemental information for the fiscal quarter ended June 30, 2013.

Is an announcement forthcoming?

The non-traded REIT was launched in 2013 and focuses on investing in freestanding single-tenant retail properties that are net leased to investment grade and other creditworthy tenants.

The company has seen quick success, collecting a whopping 463 properties with an aggregate purchase price of $2.2 billion as of June 30, 2013. Other highlights include the company’s net leverage ratio of 40% and that it generated revenue of $42.5 million for the quarter.

ARCT V’s sponsor, AR Capital, created liquidity for two other non-traded REITs earlier this year by listing them on public exchanges.

The two REITs, New York REIT (NYRT) and American Realty Capital Healthcare (ARC Healthcare), were a similar size to ARCT V in terms of portfolio value at the time of listing.

ARC Healthcare had 129 properties and one preferred equity investment with an aggregate purchase price of $1.9 billion before listing on the NASDAQ under the symbol ‘HCT’ while NYRT was valued at $2.8 billion and had 23 properties before listing on the NYSE under the symbol ‘NYRT.’ 

Both trusts listed in April.

ARC Healthcare was subsequently sold to Ventas (NYSE: VTR), another publicly traded REIT. 

NYRT is currently trading at $10.55.

With the overall markets in flux, will ARCT V choose to list or seek other alternatives?